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The longevity of $1 million in retirement savings greatly differs across the United States, with some states providing a financial cushion that could last up to 80 years, while in other states, those funds may be depleted in less than 20 years.
This insight comes from a recent analysis by GOBankingRates, which assessed how far a retirement nest egg of $1 million, in conjunction with Social Security benefits, would stretch in every state.
To arrive at these conclusions, the study analyzed essential living expenses for an individual, utilizing information from the Missouri Economic Research and Information Center alongside retiree spending stats from the Bureau of Labor Statistics. The evaluation included various expenditures such as groceries, housing, utilities, transportation, healthcare, and miscellaneous costs, intentionally overlooking tax implications.
Additionally, home pricing data from Zillow were considered, based on a hypothetical 10% down payment and a mortgage interest rate of 6.91%.
According to the findings, Hawaii ranks as the state where $1 million lasts the least amount of time, covering only 12 years of retirement expenses. California and Massachusetts follow closely, allowing for 16 and 19 years, respectively. The primary drivers of high expenses in these states are soaring housing costs, but other factors like healthcare, utilities, and food also contribute significantly.
Conversely, less expensive states show a dramatically longer lifespan for $1 million in savings, as illustrated by Mississippi and West Virginia, where it could last an astonishing 87 and 89 years, respectively.
Below is a breakdown of how many years $1 million could sustain a single retiree across the United States, utilizing information from GOBankingRates, sorted in alphabetical order.
Alabama
Monthly expenses: $1,794
Annual cost after Social Security: $14,874
Years $1 million lasts: 67
Alaska
Monthly expenses: $2,601
Annual cost after Social Security: $35,853
Years $1 million lasts: 28
Arizona
Monthly expenses: $1,890
Annual cost after Social Security: $31,215
Years $1 million lasts: 32
Arkansas
Monthly expenses: $1,725
Annual cost after Social Security: $13,000
Years $1 million lasts: 77
California
Monthly expenses: $2,269
Annual cost after Social Security: $61,406
Years $1 million lasts: 16
Colorado
Monthly expenses: $1,899
Annual cost after Social Security: $39,759
Years $1 million lasts: 25
Connecticut
Monthly expenses: $2,154
Annual cost after Social Security: $34,113
Years $1 million lasts: 29
Delaware
Monthly expenses: $1,930
Annual cost after Social Security: $27,919
Years $1 million lasts: 36
Florida
Monthly expenses: $1,893
Annual cost after Social Security: $29,362
Years $1 million lasts: 34
Georgia
Monthly expenses: $1,863
Annual cost after Social Security: $23,206
Years $1 million lasts: 43
Hawaii
Monthly expenses: $2,761
Annual cost after Social Security: $80,125
Years $1 million lasts: 12
Idaho
Monthly expenses: $1,887
Annual cost after Social Security: $32,289
Years $1 million lasts: 31
Illinois
Monthly expenses: $1,931
Annual cost after Social Security: $19,937
Years $1 million lasts: 50
Indiana
Monthly expenses: $1,854
Annual cost after Social Security: $16,826
Years $1 million lasts: 59
Iowa
Monthly expenses: $1,836
Annual cost after Social Security: $15,158
Years $1 million lasts: 66
Kansas
Monthly expenses: $1,801
Annual cost after Social Security: $15,315
Years $1 million lasts: 65
Kentucky
Monthly expenses: $1,864
Annual cost after Social Security: $14,456
Years $1 million lasts: 69
Louisiana
Monthly expenses: $1,785
Annual cost after Social Security: $13,065
Years $1 million lasts: 77
Maine
Monthly expenses: $2,070
Annual cost after Social Security: $30,194
Years $1 million lasts: 33
Maryland
Monthly expenses: $1,931
Annual cost after Social Security: $31,301
Years $1 million lasts: 32
Massachusetts
Monthly expenses: $2,340
Annual cost after Social Security: $51,686
Years $1 million lasts: 19
Michigan
Monthly expenses: $1,835
Annual cost after Social Security: $16,561
Years $1 million lasts: 60
Minnesota
Monthly expenses: $1,936
Annual cost after Social Security: $24,654
Years $1 million lasts: 41
Mississippi
Monthly expenses: $1,784
Annual cost after Social Security: $11,473
Years $1 million lasts: 87
Missouri
Monthly expenses: $1,780
Annual cost after Social Security: $16,403
Years $1 million lasts: 61
Montana
Monthly expenses: $1,825
Annual cost after Social Security: $31,651
Years $1 million lasts: 32
Nebraska
Monthly expenses: $1,857
Annual cost after Social Security: $18,172
Years $1 million lasts: 55
Nevada
Monthly expenses: $1,855
Annual cost after Social Security: $32,332
Years $1 million lasts: 31
New Hampshire
Monthly expenses: $2,081
Annual cost after Social Security: $38,052
Years $1 million lasts: 26
New Jersey
Monthly expenses: $2,001
Annual cost after Social Security: $41,315
Years $1 million lasts: 24
New Mexico
Monthly expenses: $1,829
Annual cost after Social Security: $20,976
Years $1 million lasts: 48
New York
Monthly expenses: $2,028
Annual cost after Social Security: $34,570
Years $1 million lasts: 29
North Carolina
Monthly expenses: $1,883
Annual cost after Social Security: $23,429
Years $1 million lasts: 43
North Dakota
Monthly expenses: $1,862
Annual cost after Social Security: $19,006
Years $1 million lasts: 53
Ohio
Monthly expenses: $1,853
Annual cost after Social Security: $16,099
Years $1 million lasts: 62
Oklahoma
Monthly expenses: $1,832
Annual cost after Social Security: $14,048
Years $1 million lasts: 71
Oregon
Monthly expenses: $2,017
Annual cost after Social Security: $37,346
Years $1 million lasts: 27
Pennsylvania
Monthly expenses: $1,878
Annual cost after Social Security: $18,974
Years $1 million lasts: 53
Rhode Island
Monthly expenses: $2,113
Annual cost after Social Security: $36,920
Years $1 million lasts: 27
South Carolina
Monthly expenses: $1,838
Annual cost after Social Security: $20,595
Years $1 million lasts: 49
South Dakota
Monthly expenses: $1,834
Annual cost after Social Security: $21,074
Years $1 million lasts: 47
Tennessee
Monthly expenses: $1,713
Annual cost after Social Security: $20,466
Years $1 million lasts: 49
Texas
Monthly expenses: $1,851
Annual cost after Social Security: $21,155
Years $1 million lasts: 47
Utah
Monthly expenses: $1,893
Annual cost after Social Security: $37,797
Years $1 million lasts: 26
Vermont
Monthly expenses: $2,050
Annual cost after Social Security: $30,022
Years $1 million lasts: 33
Virginia
Monthly expenses: $1,927
Annual cost after Social Security: $28,916
Years $1 million lasts: 35
Washington
Monthly expenses: $2,096
Annual cost after Social Security: $45,629
Years $1 million lasts: 22
West Virginia
Monthly expenses: $1,833
Annual cost after Social Security: $11,263
Years $1 million lasts: 89
Wisconsin
Monthly expenses: $1,895
Annual cost after Social Security: $22,148
Years $1 million lasts: 45
Wyoming
Monthly expenses: $1,864
Annual cost after Social Security: $24,836
Years $1 million lasts: 40
Source
www.cnbc.com